CAPITAL ONE FINANCIAL CORP acquired Chevy Chase Bank for ~$520 million at announcement ($445 million cash + 2.56 million Capital One shares); ~$475.9 million total value at close, a transaction completed in February 2009, structured as combination.
Chevy Chase Bank operates in Regional banking / deposits, is based in Bethesda, Maryland, USA (Washington, D.C. / Mid-Atlantic). Capital One acquired Chevy Chase Bank under a Stock Purchase Agreement with B.F. Saul Real Estate Investment Trust and affiliates, in a cash-and-stock transaction valued at approximately $520 million at announcement. Chevy Chase added about $11 billion of deposits (roughly $13 billion at close) and the largest branch and ATM network in the Washington, D.C. region, where Capital One was already the largest retail depository institution. Capital One recorded a $1.75 billion net credit mark on Chevy Chase's loan portfolio.
A strategic and economically compelling fit that enhances Capital One's deposit base and gives it greater scope and scale in key Mid-Atlantic banking markets at a time when core funding is key.
A high-quality retail deposit franchise in Capital One's home Washington, D.C. market, available amid the financial crisis. Largest D.C.-region branch and ATM network; expanded low-cost deposit base. Chevy Chase Bank, F.S.B. operated as a Capital One subsidiary before being folded into Capital One's banking operations.
Chevy Chase is a great strategic fit for Capital One and the combination of our two banks is economically compelling. Chevy Chase provides an opportunity to acquire a well-run retail bank with local scale in one of the best local banking markets in the U.S.Richard D. Fairbank, Chairman and CEO, Capital One
Advisory firms were not disclosed for this transaction.